What are the differences between business markets and consumer markets?

What will be an ideal response?

Business markets consist of companies involved in business-to-business (B2B) transactions. In business markets,
businesses sell products and services to other businesses, instead of consumers. As a result, business markets differ
from consumer markets in several important areas:
• Fewer Buyers: Business-to-business companies sell their products to fewer buyers than their
business-to-consumer (B2C) counterparts. In fact, some B2B companies target their sales to only one, large buyer,
like General Motors or the U.S. government.
• Larger Orders: B2B orders are generally larger, and worth more than B2C orders. For example, a medical supply
company selling to a hospital might process orders worth hundreds of thousands of dollars, much more than
consumers would spend on such supplies.
• Multiple Sales Calls: B2B salespeople often visit prospects ten times or more to close a major sale. It is rare to find
such a large number of visits for consumer items.
• Longer Sales Cycles: Sales cycles for complex B2B products can take six months or more to close. Sales cycles for
consumer items, even big-ticket items like houses, are rarely longer than 30 days.
• Close Seller–Buyer Relationship: B2B companies that sell to other businesses form a close relationship with their
buyers over many years. Consumers, on the other hand, have a limited involvement with sellers.
• Professional Purchasing Role: Most B2B companies appoint a purchasing agent to manage purchase negotiations
and contracts for the firm. Consumers typically represent themselves.
• Multiple Buying Roles: B2B companies involve multiple people, with multiple roles, in the buying process. Except
for some major decisions, like buying a house, most consumer buying decisions are made alone.

Business

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